Just very untrue. The state might not keep up with inflation (though in most countries they do because their wages are tired to inflation), but private sector depends on demand for the job, as everything does.
Borrowing money does not create inflation. Inflation is caused by 2 things, higher demand for something, higher costs for making something.
If the government borrows money and gives it to people who were working, but are not, it does not cause inflation because demand has not increased. or at least not increased more than before.